H.E. Yasir O. Al-Rumayyan
Chairman of the Board
In 2020, the resilience of the Ma’aden model was tested by an unprecedented global pandemic which also impacted our competitors and customers.
It was a test that our model, our team, and our company, admirably passed.
As Chair of Ma’aden, I am immensely proud of how we responded to the difficult global operating environment. Where others may have seen challenges, as a company we saw opportunities.
Ma’aden was well-placed to respond to the challenges of COVID due to our strong business fundamentals, and strategically diversified investment portfolio. We were also able to reap the benefits of the world-class infrastructure that the Saudi Arabian government put in place over recent years, providing Ma’aden with a clear competitive advantage.
Taken together, these factors provided a solid foundation for Ma’aden’s exploration, manufacturing, and production activities, and enabled our business to weather the COVID storm.
Throughout the year, Ma’aden’s production activity saw little disruption and we continued to provide highquality products to our customers around the world.
Keeping our employees safe is Ma’aden’s greatest responsibility. Throughout 2020 we continued to drive up safety standards across all of our operations, believing that incidents are avoidable if risk is assessed and managed proactively.
Our approach is starting to deliver a fundamental shift in safety culture and behavior across all parts of Ma’aden, which places safety at the heart of all that we do, on and off the job.
We are making measurable progress toward our goals, with large reductions this year in the number of reportable incidents, and an increase in the number of safe man-hours worked. We will assertively continue to build on this progress, with new safety standards now rolled out across Ma’aden.
In addition to keeping employees safe, we have a responsibility to ensure that the physical and emotional well-being of employees is well looked after.
This year, the launch of our new company-wide standards on Environment, Health, Safety and Security (EHSS) has improved our focus on providing employees with a working environment that positively supports their health and wellbeing.
New digital platforms have also been put in place that enable our employees to access the health advice and support that they need.
Environmental protection is a key consideration in every decision Ma’aden takes. We take our environmental responsibilities seriously, managing our operations in a way that minimizes our ecological footprint.
Ma’aden recognizes the need to work in a way that meets the requirements of the present without compromising the ability of future generations to meet their own needs.
In 2020, we made strong progress on reducing CO2 emissions, reducing water and energy usage and increasing recycling. We see this careful stewardship as a key priority moving forward into 2021.
Ma’aden has been strengthening its approach to broader sustainability issues since 2015. In 2020, we launched our new Ma’aden Sustainability Framework, which represents a major milestone on our journey to sustainable business delivery.
This Framework, which adopts leading global standards and practices, was implemented across Ma’aden units in 2020, showing our clear, impactful and measurable commitment to achieve key sustainability goals.
Ma’aden is committed to being a sector leader in sustainable practices, and our new Framework moves us closer to that objective.
Ma’aden continues to adopt technology and innovation to deliver for our employees, customers, and stakeholders.
Our advanced technological infrastructure has been key to our operational resilience in 2020, enabling Ma’aden to continue excelling as a business despite the challenging operating environment.
We regard technology as a major element that will help provide the basis for future growth. We are already beginning to see the benefits that come from the intelligent collection and use of ”Big Data,” putting advanced models in place to analyze data from years of plant operations and develop predictive models and process control systems.
In production, our facilities are sector-leading, with the development and implementation of bespoke machinery for extracting and processing the mineral wealth that Saudi Arabia enjoys. For example, this year we made improvements to our milling machinery at the Ad Duwayhi Gold Mine that have increased production, while reducing energy consumption by 28%.
We continue to explore and exploit the new opportunities that Artificial Intelligence and Machine Learning bring, for instance utilizing machine learning to target areas more accurately for mineral exploration.
We will continue to invest in digitalization across all of our operations. The Ma’aden Transformation Program, launched in 2020, is putting in place cloud-based technology to streamline operations by automating management and operation systems to drive up performance, one of its first kind in Saudi Arabia.
This investment in future technologies will cement Ma’aden’s place as an industry disruptor, and pave the way for more digitalization and artificial intelligence in Ma'aden’s future operations. It will also deliver value to our shareholders, customers and team members.
The robustness, transparency, and quality of our decision-making structures are critical to Ma’aden’s success.
Our Board of Directors brings together an array of experience and expertise from diverse backgrounds, providing the company with access to a world-class combination of skills and experience from inside the global mining industry and other industries.
This combination of cross-sector expertise creates a unique learning environment and enables us to work smarter and think bigger.
I am pleased to say that the 2020 was a strong year for Ma’aden, providing a solid basis for continued growth and expansion. We will continue to strengthen capabilities, improve efficiency and expand operations to achieve our goal of becoming a globally recognized mining leader and to participate in fulfilling the ambitious goals for mining that were set in Vision 2030.
Our 2020 performance, and the recent US $4.1 billion refinancing of our phosphate company, will help ensure that we start the new year with a strong financial footing.
As we look forward to 2021, we are excited about delivering on key milestones. Our new development, Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC), is expected to reach full production capacity by the end of the coming year or simply by the end of 2021. MWSPC will increase our total capacity by a third and solidify our position as a leading global fertilizer producer while contributing to global food supply stability.
The Board plays an active role in guiding Ma’aden’s Strategy and works closely with our Executive Management in working toward achieving Ma’aden’s goals.
We believe governance is a fundamental driver of any business; and as we progress on our path of growth and international expansion, our strong corporate governance will continue to define and guide our trajectory.
Our US $880m investment in the Mansourah & Massarah Gold Mine facility will also be coming on stream, contributing to our goal of reaching 1 million ounces annually and becoming a global leader in gold production.
None of these advances would be possible without our committed, dedicated, and expert Ma’aden team.
I also take this opportunity to acknowledge the efforts of the Executive Management team and all of Ma’aden’s employees in 2020, and to thank them for their help in delivering such strong performance in challenging global circumstances.
On behalf of the Board of Directors, I assure our investors that we remain financially strong and equipped to take on any business challenge that lies ahead. We are primed for continued success in the year ahead, and we thank our shareholders for their continued trust and confidence in the company’s leadership and workforce.
H.E. Yasir O. Al-Rumayyan
Chairman of the Board
